UNUSUAL PRICE AND TRADING VOLUME MOVEMENTS

This statement is made at the request of

We have noted the decrease in price and increase in trading volume of the shares of
the Company today and wish to state that we are not aware of any reasons for such
movements.

Save as the matters as disclosed in the announcement of the Company dated 16 July
2007 in relation to the Group’s annual results for the year ended 31 March 2007, we
confirm that there are no negotiations or agreements relating to intended acquisitions
or realisations which are discloseable under Rule 13.23 of the Listing Rules, neither is
the Board aware of any matter discloseable under the general obligation imposed by
Rule 13.09 of the Listing Rules, which is or may be of a price-sensitive nature.

Made by the order of the Board of Daisho Microline Holdings Limited, the directors
of which individually and jointly accept responsibility for the accuracy of this
statement.

By Order of the Board
Au-Yeung Wai Hung
Company Secretary

Hong Kong, 17

July 2007

As at the date of this announcement, the Board consists of five executive directors,
namely, CHAN Sik Ming, Harry, Motofumi TSUMURA, Hiroto SASAKI, Hiroyuki
KIKUCHI and AU-YEUNG Wai Hung, and three independent non-executive
directors, namely, Kohu KASHIWAGI, CHAN Yuk Tong and LI Chi Kwong.